Solarpack signs agreement to acquire Tacna Solar and Panamericana Solar power plants in Peru

Solarpack Corporación Tecnológica, SA has announced the signing of a share purchase agreement for the acquisition of 90.5% of the solar photovoltaic projects Tacna Solar and Panamericana Solar with TAWA SOLAR FUND LP and the rest of the projects’ shareholders, for US$51.5 million. The closing of the acquisition is expected to materialize in the next 4 months, once the usual procedures for this type of transaction are completed. After the closing, the company will become the owner of 100% of the Projects, since prior to the transaction it had 9.5% of the shares of the special purpose vehicles owning the assets: Tacna Solar SAC and Panamericana Solar SAC.

The projects, which were developed and built by Solarpack in 2012 in association with Gestamp Asetym Solar (now X-ELIO), are located in southern Peru and have a total combined installed capacity of 43 MW. Both Projects have a long-term power purchase agreement in place with the Peruvian Ministry of Energy, as a result of the first renewable energy resources tender held in Peru in 2010, and have more than 13.5 years of remaining contractual life under their respective PPAs.

In order to partly finance the acquisition of the projects, Solarpack has signed a bridge loan with a financial entity for US$30 million that will be disbursed once the acquisition materializes. For the amortization of the bridge loan, the company contemplates several options that may involve the entry of a minority partner in the projects or, alternatively, maintaining full ownership of the assets.